It is expected that investors and other financial statement users will ultimately demand some assurance from an auditor or external party on a firm’s use of XBRL Discuss that statement showing the XBRL possible assurance objectives

It is expected that investors and other financial statement users will ultimately demand some assurance from an auditor or external party on a firm’s use of XBRL Discuss that statement showing the XBRL possible assurance objectives

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter1: Quality Auditing: Why It Matters

Section: Chapter Questions

Problem 1RQSC

See similar textbooks

Related questions

Q: Which of the following is a reason that an entity may receive an audit? Select the best response and…

A: A listed Entity may receive audit requirement by any law or authority such type of audit is called…

Q: Define information risk and explain how thefinancial statement auditing process helps toreduce this…

A: Information risk is the risk that the information disseminated by a company will be materially tend…

Q: Other types of assurance services provided by CPAS have developed as a natural extension of the…

A: An audit department is a division within a company or organization that is in charge of assessing…

Q: Describe what is meant by acceptable audit risk. Explain whyeach of the following statements is…

A: Auditor willingness to accept materially misstated financial statement when the audit of company is…

Q: In mitigating risks, discuss some of the important issues that must be addressed in developing a…

A: The purpose developing the reliable financial standard is needed for the company to making the…

Q: How can auditors gain assurance about fair value estimates in the investment cycle?

A: While assuring about the fair value estimates in the investment cycle, an auditor's foremost task is…

Q: In performing risk assessment procedures for investments, an auditor may inquire of the client…

A: Risk assessment procedures for investments which are carried out by the auditor are followed and…

Q: ine the reasons why auditor independence is considered of fundamental importance for confidence in…

A: The independence of the auditor is referred to as auditor independence. It is distinguished by…

Q: In performing risk assessment procedures for investments, an auditor may inquire of the client…

A: The question is related to risk assessment in respect of Investments.

Q: In performing risk assessment procedures for investments, an auditor may inquire of the client…

Q: Simplified approaches for preparing pro forma statements assume that the firm’s past financial…

A: External auditors are businesses or people that are professionally trained and engaged in the job to…

Q: Describe the ASB's Clarity Project. Why is this so important for the auditing profession?

A: Auditing Standard Board (ASB) is a board which issues guidelines and rule pronouncements that need…

Q: Considering the competence of a firm should include consideration of whether the audit firm…

A: The auditor should have necessary competence to carry out the audit work of the client. If he has no…

Q: Explain why auditors’ reports are important to users of financialstatements and why it is desirable…

Q: What possible actions would an auditor might take if a client’s financial statements depart from…

A: Introduction: A set of financial statements summarizes a company's monetary results, financial…

Q: Which are the three core areas for which a financial manager is expected to devise a financial…

A: Financial management deals with the raising and allocation of funds in an efficient and effective…

Q: Which of the following best demonstrates the concept of professional skepticism?a. Relying more…

A: Answer: Option c.

Q: What are some of the typical areas of concern to auditors involving investment accounts?

A: Investment Accounts: The accounts held with banks, investment companies, and brokerage houses for…

Q: External auditing gives confidence in the integrity of corporate reporting for the benefit of: a.…

A: Auditing refers to the art of inspecting and investigating financial accounts of a company. It is…

Q: The external auditor: Group of answer choices Tests the underlying transactions that form the basis…

A: Definition of Audit - The audit is an independent examination of the financial information of an…

Q: us auditing? What other technologies will be available to make the cost benefit of continuous…

A: Audit Planning: Audit Planning signifies fostering an overall technique and a nitty-gritty…

Q: nciples (GAAP) and are audited by CPA firms. Do investors need to worry about the validity of those…

A: GAAP = generally accepted accounting principles When CPA firms are audited they take all types of…

Q: When auditing an investment in another company, an auditor most likely would seek to conduct which…

A: Definition: Valuation assertion is the manage assertion where it is ensured that the valuation of…

Q: When auditing an investment in another company, an auditor most likely would seek to conduct which…

A: Valuation assertion of investments involves verifying if the value of the asset stated in the books…

Q: hat is the authoorative status of the Conceptual Framework? a. to provide the foundation for…

A: Answer: Concept: Conceptual framework deals with financial reporting.

Q: Which of the following engagement is covered by the Framework for Assurance Engagements?* Consulting…

A: There are various types of audit engagements and each audit engagement has different purpose to…

Q: ypes of evidence would you normally look during the performance of your Financial Statement audit?

A: Definition Audit evidence is information or data that auditors use or collect as part of their audit…

Q: Having an audit performed on the company's financial statements BEST illustrates which of the…

A: An audit performed for ensuring the quality of financial information.

Q: Which of the following is not a purpose of the Center for Audit Quality which is affiliated with the…

A: Centre for Audit Quality (CAQ) is affiliated to the AICPA. As the name indicates CAQ is focused…

Q: Why is it so important to choose auditors at the proper moment for a financial statement audit to be…

A: For a financial statement audit to be successful, the auditors must be chosen at the right moment.

Q: Describe the users of audited financial statements and the decisions that they need to make based on…

A: Users of Financial statements: When referring to users of financial statements, we're talking about…

Q: a) The investing public has a good understanding of what auditors do. True or False?

A: solution concept The general public or say the potential investors don’t have the detailed or good…

Q: Critically assess the qualitative characteristics of financial statement that would made it credible…

A: Financial statements are the financial reports that state the performance of the business. The…

Q: Which of the following approaches is most suitable for auditing the finance and investment cycle?a.…

Q: Which of the following is a benefit of providing financial information? O Auditing. O Potential…

A: Financial information in the business means financial statements in the business that shows…

Q: ly the same m

A: Financial Statements: Financial statements are condensed summary of transactiions communiicated…

Q: Compare and discuss the impact of the business environment on the internal audit risk assessment

A: The process of risk assessment helps in identifying and analyzing risks so that the objectives of…

Q: Differentiate some of the implications of Efficient Securities Markets (ESM) for financial reporting…

A: Stakeholders are those who are interested in the company and can influence or be influenced by the…

Q: Compliance auditing often extends beyond audits leading to the expression ofopinions on the fairness…

A: Auditing: Auditing refers to an independent examination of financial information of any…

Q: ect financial interests mean? What does direct financial interests mean? And why should auditors be…

A: An indirect financial interest is a financial interest that is beneficially owned through an…

Q: Using the concept of justice, evaluate how an auditor would assess the equality of interests in the…

Q: Assess the economic significance and limitations of audit work to business and investor interests,…

A: Ans. Their are various significance of auditing in a business. Though it comes with few limitations…

Q: do family firms need audit ? explain what do we mean by auditors considering various risks related…

A: According to the size of company, volume of transactions and style of functioning the management can…

Q: Although audit reports should provide assurance to investors and creditors that financial…

Q: Which of the following is the best description of reliability in relation to information in…

A: The primary purpose of business investment is to create a profit and grow one's wealth. An…

Q: In performing risk assessment procedures for investments, an auditor may inquire of the client…

A: Risk Assessment Procedure: Identifying and assessing the risks of substantial misrepresentation,…

Q: Which of the following is the least independent piece of information to collect about a company that…

A: Audit represents the professional activity of examining the financial statements of the entity and…

Question

It is expected that investors and other financial statement users will ultimately demand some assurance from an auditor or external party on a firm’s use of XBRL

Discuss that statement showing the XBRL possible assurance objectives

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Concept

VIEW

Step 2 XBRL possible assurance objectives

VIEW

Step 3 Conclusion

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

You have been approached by the financial institutions DatabankFinancial Services Limited and Blackstar holdings limited to be theirauditors.a. Iterate the factors that can heighten ‘engagement risk’ as auditorsfor either of this companies and what kind of information youwill require to guide your decision.b. Assuming you consider a risk-based strategy as an effective auditstrategy for executing your mandate, what are the probable areasof risk you will focus on and how will you test for them?
) You have been approached by the financial institutions Databank Financial Services Limited and Blackstar holdings limited to be their auditors. a. Iterate the factors that can heighten ‘engagement risk’ as auditors for either of this companies and what kind of information you will require to guide your decision. b. Assuming you consider a risk-based strategy as an effective audit strategy for executing your mandate, what are the probable areas of risk you will focus on and how will you test for them?
NOTE: PLEASE TAKE YOUR TIME AND ANALYSE THE QUESTION VERY WELL. PROVIDE DETAILED INFORMATION ANSWERS AND INFORMATION AS YOU SOLUTION. THANK YOU. You have been approached by the financial institutions Databank Financial Services Limited and Blackstar holdings limited to be their auditors. a. Iterate the factors that can heighten ‘engagement risk’ as auditors for either of this companies and what kind of information you will require to guide your decision. b. Assuming you consider a risk-based strategy as an effective audit strategy for executing your mandate, what are the probable areas of risk you will focus on and how will you test for them?
An assurance service is defined as a service thata. Provides auditing services to nonfinancial information.b. Reviews unaudited financial information.c. Improves the quality of information for decision makers.d. Reduces the risk in management decision making.
Describe the users of audited financial statements and the decisions that they need to make based on reliable information. Please use the illustration below to help you answer this question.
Critically evaluate the importance of auditor independence in adding value to the financial statements. With reference to a real case where auditor independence has been questioned, critically discuss the challenges to achieving auditor independence
Compliance auditing often extends beyond audits leading to the expression of opinions on the fairness of financial presentation and includes audits of efficiency, economy, effectiveness, as well as: Select one: a. accuracy. b. evaluation. c. adherence to specific rules or procedures d. internal control.
Which of the following best demonstrates the concept of professional skepticism?a. Relying more extensively on external evidence rather than internal evidence.b. Focusing on items that have a more significant quantitative effect on the entity’s financialstatements.c. Critically assessing verbal evidence received from the entity’s management.d. Evaluating potential financial interests held by auditors in the client
Explain the concept of “Reasonable Assurance” in the context of financial statement audit.
Outline the reasons why auditor independence is considered of fundamental importance for confidence in financial statement auditing and evaluate the case for and against recent regulatory changes that affect the relationship between the auditor and the reporting company. Any help?
Can investors be confident that if the financial statements of different companiesare accurate and are prepared in accordance with GAAP, the data reported by onecompany will be comparable to the data provided by another?
Explain why auditors’ reports are important to users of financialstatements and why it is desirable to have standard wording.